How to buy a home in Italy

-- Tra i migliThe Steps to Buying a Property in Italy contact me info@londonvillage.it
Italian real estate is a complex area, so before you get in contact with local realtors or real estate agents who have property for sale in Lombardy you may find it helpful to get to grips with what's involved in purchasing
property in Italy.

A foreigner planning to buy a place in Italy should be aware of the main Italian law issues concerning the real estate buying process.
The transaction has to be governed by Italian law and the deed has to be executed in written form, preferably before a public notary. The public notary acts as a State officer and takes care of the registration of the real estate transfer at the land registries (conservatoria and catasto). Usually the public notary is chosen by the purchaser.
Only citizens of countries which allow Italian citizens to purchase real estate assets in their territories can buy property in Italy (principle of reciprocity).The Buying Process
Once the property has been chosen, the two main steps of the buying process are usually:
The execution of a commitment agreement (compromesso)
The execution of the final deed of sale (rogito)
It is usual practice to pay a deposit (caparra), with the amount being agreed upon between the parties (but usually 10 to 20 percent of the consideration for the sale) at the signing of the commitment agreement.
The consideration for the sale shall be paid at the execution of the deed of sale (the deposit paid at the commitment agreement will be considered as part of the consideration for the sale of the property at the time of the execution of the deed of sale).

The involvement of the notary is not mandatory for the signing of the commitment agreement. However, only a commitment agreement executed before a public notary as a public deed can be registered at the land registries. Such registration is the only way to protect the purchaser in case the seller sells to a third party during the time between the signing of the commitment agreement and the execution of the deed of sale.

By signing the commitment agreement, the purchaser is committed to buy and the seller is committed to sell but in some cases at the outcome of the negotiation process the purchaser may be required to sign an irrevocable proposal binding only for the purchaser. The commitment agreement contains, among others, the date for the execution of the deed of sale, such date being subject to postponement if so agreed between the parties.

In the commitment agreement it is mandatory to clearly declare whether a real estate agent has been involved in the transaction or not, and, in case of such an involvement, the amount of the fee due to such agent. The commitment agreement is subject to the compulsory registration at the registry office (Ufficio del Registro).

Before signing any document, it is strongly advised to verify the chain of title as well as any other charge (such as easements or mortgages) that might exist on the property and the compliance of the property with the planning and building regulations. This can be checked at the land registries office. When a real estate agent is involved they should carry out such checks on behalf of the purchaser. A surveyor or technician (geometra) may be appointed by the purchaser at any stage to carry out the technical surveys on their behalf (and at their own care and cost).

In any case the public notary performs these surveys before the execution of the deed of sale.

Note: very recently (Legislative Decree dated 19th March 2010) the role of the real estate agent (Ruolo dei Mediatori Immobiliari) was cancelled. It is no longer mandatory that the real estate agent is registered in such role in order for her/him to be entitled to the fee. However the above mentioned Legislative Decree introduced for the real estate agents the obligation to register themselves in another registry at the relevant Chamber of Commerce (Camera di Commercio, Industria, Artigianato ed Agricoltura - CCIAA), but the details of such new registration are still not available.
Financing a Property Purchase

Loans can be granted by banks, provided that a mortgage is registered on the property to secure the re-payment of the loans.
Property Tax

The purchaser is generally responsible for taxes payable at the transfer of the property.

In case of purchase from a physical person (not a contractor) the purchaser has to pay the registration tax. In case of purchase from a company or a contractor the purchaser has to pay the value added tax (VAT).
Foreigners

Note that married people should expect to be asked by the public notary about their matrimonial property regime (regime patrimoniale).Thanks for these info from http://milan.angloinfo.com